Uber drives 2016 losses to $3b - reports

Uber losses
The Uber app (APP)

Uber's losses for 2016 are projected to break $3 billion, according to reports.

Bloomberg says an internal source at Uber told them the company lost around US$580 million (NZ$825m) in the first quarter of 2016, as well another US$800 million (NZ$1138m) in the second and third quarters.

While Uber's revenue is expected to have grown to over $5.5 billion, the company faces increased costs from investment in autonomous vehicles, lobbying, lawsuits, and higher wage costs from its drivers.

Transport industry expert Hubert Horan says Uber is subsidising 59 percent of the cost of each passengers' trip, in order to drive rivals from the market and achieve a monopoly.

However, the losses do not appear to have bothered investors - Uber's valuation has soared to US$69b.